VOIP sees revenue boom

broadband market has found that value-added services, such as security, voice over Internet protocol (VOIP) and IPTV, added almost 37% to the basic broadband subscription during 2010, and generated $60 billion in revenue for vendors, iTWire reports.

During the same period, Point Topic found that total value-added service (VAS) revenues increased from a rate of $48.8 billion at the end of 2009, to $57.5 billion at the end of 2010.

Digital TV Europe estimates that total broadband access revenues increased from a run rate of $129 billion at the end of 2009, to $157 billion at the end of 2010.

Excluding Skype, VOIP revenues stood at more than $1 billion at the end of last year, with 120 million subscribers, leading Point Topic to estimate it is the most valuable addition to broadband services, Broadband Choice notes.

In contrast, the revenues generated by Skype were 20 times less at $9 million, although the analyst pointed out it offers different features to VOIP and can often be used free of charge.

John Bosnell, senior analyst at Point Topic, claims the results suggest that VAS broadband add-ons are beginning to level out in terms of overall growth, despite the fact that revenues are continuing to climb.